The company – which also reported lower-than-expected quarterly revenues – said softer demand and production issues related to its new Flex 2 wristband were to blame.
Fitbit now expects to generate revenues of between US$2.32bn and US$2.4bn for the year, way below Wall Street expectations of around US$2.6bn.
“We continue to grow and are profitable, however, not at the pace previously expected,” said chief executive James Park.
Fourth quarter sales – typically the most important for retailers and electronics firms because of the holiday season – were also forecast to miss analysts’ predictions, Fitbit said.
The san Francisco-based firm said it now expects to make a per share profit for the October to December quarter of between US$0.14 and US$0.18. The market had expected an EPS of US$0.75.
As for its third quarter figures, Fitbit saw a year-on-year rise of 23% in revenues to US$504mln, but missed the consensus forecast of US$509mln.
Shares were down 30% to US$8.98.
Story by ProactiveInvestors